Acting like the last of the big-time spenders, Mark Hart, vice president of United Homes Group (UHG) came rolling into Oconee County like he was being chauffeured in a Rolls Royce. Following his arrival, Hart met under a metaphorical cover of darkness with members of the Oconee County Council in executive sessions. (Not a good idea because executive sessions are not open to the public and information discussed cannot be disclosed.) Apparently, Hart thought that rather than going through the normal process of submitting a development application through the county’s planning department, he could do an end-around run by secretly (in executive session) cutting a deal with the County Council for a multi-thousand home development in Newry.
United Homes Group had purchased three tracts of land in Oconee County with the intention of building a multi-use development with thousands of homes and space for commercial businesses. UHG Mark Hart had approached the county council and presented his plans. Council chairman Matthew Durham advised Hart that his proposal did not meet county zoning ordinances, whereupon Hart responded by making threats.
Specifically, Durham replied, “We told them no. They can build within the rules like everyone else, but we will not hand out exemptions. In response, they sent a letter saying they don’t feel compelled to recognize our ordinance and even threatened annexation, lawsuits, and political action against us if they don’t get their way.” Durham also began investigating UHG’s business practices and corporate structure. When he found that Clemson University president James Clements and former governor Nikki Haley were members of UHG’s board of directors, he stated, “When the same people guiding Clemson University’s uncontrolled growth also sit on the board of the company purchasing property that profits from the University’s growth, it naturally raises serious questions about influence and priorities.
None of that was ever disclosed to County Council. We only found it after I went public — when private citizens uncovered the designs and sent them to us. That discovery exposed what’s really driving this whole thing—Clemson’s unchecked growth spilling into Oconee County.”
As it turns out, Hart wasn’t riding in a Rolls, but in a jalopy which is no longer rolling because the wheels have come off.
Whether as a result of the controversy over the Newry development or because of pre-existing issues, or both, the wheels came off because, as reported by builderonline.com, “Six United Homes Group board members resigned after executive chairman Michael Nieri refused to step down from the position and forgo any future compensation from the company under the guise of cost-savings.” Nikki Haley and James Clements also resigned.
Those resignations led to UHG’s stock taking a nosedive. On October 20th it dropped more than 50%, from $4.26 to 2.025 per share. On October 21st, it closed at $1.74 per share. At that price, investors will be hard pressed to afford new wheels for the UHG jalopy.
In spite of Hart’s threats, it appears that USG’s Newry project is dead. And with the company’s jalopy resting on cinder blocks, Mark Hart just might be traveling on a Greyhound.
We should be so fortunate to have a Matthew Durham on Clemson city council! What the current council has done to the town of Clemson is a DISGRACE! I lived, worked, and paid taxes in Seneca for 40 years. Our city and county councils paid attentention to what citizens wanted when they showed up to council meeting. That has definitely NOT HAPPENED in Clemson since I moved her 4 years ago. SHAMEFUL! Why even have a city council??????
There are a number of aspects to development that often go unnoticed. Primary among them is the need for intelligent zoning. Second- the need for voters to elect county or city council members who are intent on preserving zoning ordinances and only granting variances that maintain area character. Oconee County council fortunately took a step in the right direction last year and passed an ordinance that specifies minimum lot sizes of 1/4-acre if a property is served by sewer and 1/2-acre for properties on septic tank. Cities are in a different situation because t makes sense to allow higher density and each potential development should be evaluated on its appropriateness for the specific area. Unfortunately, many council members only see the potential for increased tax revenue and what they often don’t realize is that some developments will ultimately result in the need to raise taxes because the additional revenue that results from new homes may not offset the increase in expenditures necessitated by the need for increased services (fire, police, trash collection and sewer if they’re not billed separately). Equally unfortunate- the same council members who voted for unbridled development are routinely reelected.
Better keep an eye on Seneca development. The new Target shopping center for example, has no access road other than directly off of 123. Another Clemson traffic jam in the making.
[…] Palmetto State Watch Foundation published “The Wheels Have Come Off the UHG Jalopy”, the available information indicated the story was little more than a tale of corporate […]
[…] Part 1, The Wheels Have Come off the UHG Jalopy, detailed the resignations of the United Homes Group (UHG) board of directors and the resulting nosedive of the company’s stock, which dropped approximately over 50%, from $4.69 to $1.74 per share following the announcement of the resignations. By November 21st, the stock price had dropped to $1.01 per share. […]